Costs and low supply affect exports

Sao Paulo-the slowdown in processing industry, either by low offer in stock or by expenditure restraint, have negatively impacted exports of orange juice. Despite the falls in volume and value, the tendency is to recover throughout the year.
In the crop year, corresponding to the months of July 2016 to March 2017, external sales of the segment is 19% lower when compared to the same period in 2015/2016. In this season, until March, were shipped 665,870 tons of juice FCOJ-type equivalent.
The recipe was already 10% lower in the same range, totaling $1.198 million in crop last month. The data of the Bureau of foreign trade (Secex), of the Ministry of industry, Trade and services (Mdic) have been compiled by the National Association of exporters of Citrus juices (CitrusBR).
"We''re at the peak of the offseason. Finished processing between February and March and we still don''t have new juice being rendered. Are being consumed few stocks because the crop was small. The low bid along with the off season has generated these reductions in exports ", explains the Managing Director of CitrusBR, Ibiapaba Netto. This week, the Defense Fund of Citrus (Fundecitrus) reported that the Orange season ended with 245,310,000 of 40.8 kilos, 18% lower than the last cycle citrícola. This was the lowest result since the late 80.
Among the positive points, the reduction in the number of fruit trees caused the growth of them. "The amount of fruit per box has changed due to weight gain of oranges being needed 26 fruit less than the initial estimate to compose a box", highlighted the Fundecitrus. The rate of fall of the oranges was below expectations, mainly because of the harvest.
Still in reducing costs of exports, the partner at Markestrat consulting, José Carlos de Lima Júnior, adds that the industries are reducing the volume of processing because the cost is too high. All the restricted offer scenario plays up the prices of raw material. Add to that the operating expenses, such as electricity, which settled in high levels over the past few years. It is worth remembering that the industries in this sector also have own production and shoulder other expenses that typically focus on the first link in the chain, as inputs.
"It is difficult to measure the extent of the increased costs, but it is known that it happened," says the expert.
Even so, the overall market situation points to recovery in international sales due to the low offer also in the production of Florida, in the United States, major supplier.
Expectations the United States Department of agriculture (USDA) released on Tuesday (11) more reestimativa of the 2016/2017 of Florida Orange crop. The data indicate an output of 67 million boxes, the same as estimated in March. However, the partner of Markestrat remember that the current volume of u.s. oranges is about 50 percent below the offer of four years ago.
"I find it hard to get your offer because recompose Florida underwent disease problems in orchards. The Brazil must fill this gap and, with that, you have a positive scenario [Brazilians] at least for the next two or three years, "says Lima.
Here, the Director of the CitrusBR points out that the weather was good and as the 2017/2018 harvest approaches, the pace of industry processing is resumed. "By all indications, we''re going to have a good harvest, [the Orchard] are developing well. The productive potential of the citrícola Park is inside the demand that we imagine ".